Dhoot Transmission Bets on the ‘Tangle’ Inside Electric Scooters as EVs Reshape Its Future
A modern electric scooter may look mechanically simple compared with a petrol-powered vehicle, but underneath its bodywork sits a dense network of wires, connectors, sensors and electronic systems. That “tangle” is becoming increasingly valuable—and Dhoot Transmission is betting that it can turn this hidden component into a major growth engine.
The Pune-based auto-component manufacturer has built a strong position in wiring harnesses for two-wheelers and three-wheelers and is now increasingly exposed to electric mobility. In FY25, the company held a 44.64% market share by value in India's two-wheeler and three-wheeler wiring harness market, according to the CRISIL industry report cited in its IPO documents. More strikingly, it had more than 70% market share in electric two-wheeler and three-wheeler wiring harnesses.
That EV exposure is central to the company's growth story as it moves into the public markets.
What Dhoot Transmission Actually Does
Dhoot Transmission is not an electric-scooter manufacturer. It supplies the electrical architecture that helps vehicles function.
Its portfolio includes wiring harnesses, automotive cables, connectors and terminals, sensors, electronic controllers, switches, battery-related systems and other electrical and electronic components. The company's own product portfolio describes wiring harnesses ranging from main and dashboard harnesses to battery cable systems, power-distribution harnesses and DC-DC power-supply harnesses.
A wiring harness can be thought of as a vehicle's electrical nervous system. It connects different electrical and electronic components so that power and signals can move between them.
As vehicles become more electronic, the importance of this infrastructure increases.
For an electric scooter, that can mean connections involving the battery, motor controller, display, sensors, lighting, charging system and other electronics. The opportunity is therefore not simply about selling more wires; it is about supplying increasingly sophisticated electrical systems.
EVs Have Become a Bigger Part of the Business
The shift toward electric vehicles is already visible in Dhoot Transmission's numbers.
EV-related revenue accounted for 25.22% of revenue from operations in FY25, according to IPO-related company data. That compares with about 8% in FY23, showing how quickly the EV contribution has expanded.
At the same time, the company's overall revenue from operations rose from ₹2,125.86 crore in FY23 to ₹3,444.86 crore in FY25. Profit after tax increased from ₹163.91 crore to ₹353.89 crore during the same period.
The numbers don't prove that EV growth alone caused the increase. Dhoot Transmission serves conventional vehicles as well as EVs, and its wider product portfolio and customer base also contribute to performance.
Still, the rising EV contribution is important because it gives investors a way to measure whether the company's electrification strategy is translating into actual business growth.
Why the Wiring Harness Matters More in an EV
The transition from petrol engines to electric drivetrains changes the type of electrical content inside a vehicle.
An EV does not need many of the mechanical systems associated with an internal-combustion engine, but it depends heavily on electrical power and electronic controls.
That creates opportunities for suppliers capable of handling:
- Battery connections
- Power distribution
- High-voltage interconnections
- Electronic sensors
- Controllers
- Data and communication cables
- Charging-related electrical systems
Dhoot Transmission says its harness products integrate technologies including connectors, terminals, junction boxes, high-voltage interconnection systems and data cables.
The broader implication is significant: electrification does not eliminate the wiring-harness opportunity; it changes and potentially increases the value of the electrical architecture.
Strong OEM Relationships Give Dhoot an Advantage
Another important part of the story is the company's customer base.
Dhoot Transmission supplies major automotive companies including Bajaj Auto, TVS Motor Company, Honda Motorcycle and Scooter India and Royal Enfield.
For an auto-component manufacturer, winning business from established original equipment manufacturers, or OEMs, can create long-term relationships because components often need to meet strict quality, reliability and design requirements.
But investors should not mistake a strong customer list for guaranteed future growth. Automotive suppliers remain dependent on vehicle production volumes, model launches, pricing negotiations and customer concentration.
The company's top five customers accounted for 71.18% of FY25 revenue, according to IPO-related data.
That concentration is one of the key risks investors should keep in view.
The IPO Is Also About Strengthening the Balance Sheet
Dhoot Transmission's public-market ambitions are not solely about funding EV growth.
The company proposed a ₹1,400 crore fresh issue, alongside an offer for sale of up to 1.63 crore shares in its updated IPO documents.
A significant portion of the fresh-issue proceeds is intended for debt reduction. The company plans to use about ₹493.9 crore to repay or prepay borrowings and another ₹272.58 crore toward debt reduction at subsidiaries. It has also earmarked ₹150 crore for new manufacturing facilities at Jhajjar in Haryana and Shoolagiri in Tamil Nadu.
This matters because reducing debt can give an expanding manufacturer more financial flexibility.
At the same time, new plants require capital and execution. The benefits will depend on whether additional capacity translates into profitable orders.
Why Dhoot Transmission's EV Bet Could Work
The company's biggest opportunity is the continued electrification of India's two-wheeler and three-wheeler market.
Dhoot Transmission already has a reported more than 70% share of the electric two-wheeler and three-wheeler wiring-harness segment, giving it a strong starting position.
Its product portfolio is also not restricted to one vehicle technology. The company describes around 95% of its portfolio as either EV-focused or powertrain-neutral, according to industry coverage of its IPO filing.
That could be valuable because it reduces the risk of being dependent entirely on one propulsion technology.
In simple terms, Dhoot Transmission does not need every petrol vehicle to disappear tomorrow. It can continue supplying conventional vehicles while increasing its exposure to EV platforms.
But There Are Risks Behind the EV Story
The biggest risk is that electrification does not automatically translate into higher profits.
Raw-material costs matter. Copper and specialised electronic components can affect margins, while automotive demand remains cyclical. The company itself identifies raw-material volatility and changes in vehicle demand among the risks to its business.
There is also technological risk.
EV electrical architectures are evolving rapidly. Suppliers need to keep investing in engineering, manufacturing capabilities and product development. A strong position today does not guarantee the same market share several years from now.
Customer concentration is another concern. If a major OEM reduces production, changes suppliers or negotiates lower component prices, the impact can be meaningful.
What Investors Should Watch
For investors studying the Dhoot Transmission IPO and its longer-term prospects, the key question is not simply how many electric scooters India sells.
The more useful indicators are:
EV revenue growth: Is the company's EV contribution continuing to rise?
Margins: Is higher-value electrical content translating into stronger profitability?
Customer diversification: Can Dhoot reduce dependence on its largest customers?
Capacity utilisation: Can new plants generate enough business to justify the investment?
Debt reduction: Does the IPO meaningfully improve the company's balance sheet?
Technology: Can the company maintain its position as vehicle electrical systems become more sophisticated?
These factors will tell investors whether the EV opportunity is becoming a durable earnings driver rather than simply an attractive IPO narrative.
The Bigger Picture
Dhoot Transmission's story is unusual because consumers rarely notice the products it makes. Nobody buys an electric scooter because of its wiring harness. Yet without that electrical infrastructure, the scooter's battery, electronics and other systems cannot work together.
That makes the company's bet on the “tangle” inside an electric scooter more interesting than it first appears.
Dhoot enters the public market with a significant position in two- and three-wheeler wiring harnesses, a growing EV revenue contribution and relationships with major vehicle manufacturers. Its challenge now is to convert those advantages into sustained growth while managing customer concentration, raw-material costs, capital expenditure and technological change.
For investors, the key takeaway is simple: Dhoot Transmission is not an EV manufacturer, but it is positioning itself as an important electrical-component supplier to the vehicles that are becoming electric. Whether that translates into long-term shareholder value will depend on execution, margins and the pace of India's EV transition—not just the headline market-share numbers.
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This article is for informational and educational purposes only and should not be considered investment advice
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